The Simple Life Examined- take 2: 12/01/2011

Friday, December 2, 2011

Occupy Movements

The oppressed are allowed once every few years to decide which particular representatives of the oppressing class are to represent and repress them. --Karl Marx

I can relate to the Occupy movements of the world.
While the media is focused on the issue of income inequality, I believe the problem is much deeper and complex than that.

Put simply, the people are frustrated with where the world’s economy has been going and the movement is symbolic of that frustration. American’s do not mind that someone makes more money than them, as long as it is seen to be earned. The frustration comes in when we see Bankers receiving record bonuses after being bailed out with US tax dollars, or athletes getting ridiculous guaranteed contracts, while the common man is lucky to have a job.

I have been frustrated in recent years at reports claiming rising wages and low inflation. I, and most of my friends must be working in the wrong industries. I have not seen a raise in five years and have watched my pay actually decrease through rising health care insurance costs and changes in tax laws, which actually lowered my net pay. So my net pay has become less over these past five years, but yet my costs of living keep rising. Utilities, gas and food have all increased, and there is no point in saving any money for the future because interest rates have dropped to historic lows.

If something does not change, I soon will be joining the ranks of the Occupy movements, because I will not be able to afford to keep my house.
And I am not the only one. I know of two co-workers who have already lost their house to foreclosure and others who have made the hard choice of whether to pay the mortgage or utilities some months. That being said, we are lucky to have our jobs. There has been incredible turmoil in the title insurance industry over the past few years, with several major title underwriters going belly up, and others dramatically cutting their employees and/or employees’ pay.

So what is to be done? Attack income inequity? That seems possible through two solutions: tax the rich or raise minimum wage. Neither of these ideas has seemed to work in the past and both may end up being counter productive.

Personally I think the current systems of 401ks are a big part of the problem. All of this money going into the financial sector and the average employee does not actively manage it or move it around, but yet still gets charged hefty fees and wonders why he (she) can not retire at 60. The money in the these accounts gives the financial industry enormous power and leverage and encourage the “greedy mba” stereotype to continue. The stereotype where MBAs and CEOs focus on share prices, rather than putting out a good product, or caring for the employees.

It is not simply income inequality. We need to address corporate philosophy and business ethics. We need to address the entitlement mindset of the American worker that they deserve a raise every year. We need to redesign the American dream.

Now for the real frustration….

Who is going to make the changes? Our legislators and bankers are in the 1% (or in their pockets at the least) and see no reason to make any changes. Imagine a subway, where the wealthy ride n the front and the rest of ride in the back. Reports come in that the back of the train is on fire, but the 1% blithely carry on, because their compartments are unaffected…….

Those who can affect change are part of the problem, and I believe this is why most of America does not take the “Occupy” movements very seriously. The Tea Party had the right motives, but they were naïve in their understanding of how our legislature works. Just because you vote a few out, the committees are still assigned and headed on a seniority basis. To truly unseat the legislature you would have to remove them all at one time. This will not happen, because the system was designed so that it could not. Perhaps this awakening realization explains recent Congressional approval.